The FANG virus

Thoughts

Nothing is so bad that it isn’t good for something else.

If you’re an investor in FANG stock – Facebook, Apple, Netflix and Alphabet (Google) – and potentially Microsoft as well, you will probably have one eye on your portfolio, which is doing pretty well and have recovered what was briefly lost.

The other one you will be having on how the FANG companies use the lockdown and the uproar to create new opportunities for themselves and become even more dominant.

Case in point: Facebook is still getting stronger, Amazon is cementing it’s lead in e-commerce and almost anything else with its customers being under lockdown at home. And so on and so on.

And there is reason to be optimistic (if you’re an investor, that is), because what does the FANG companies have that many others don’t at this point?:

Cash. Piles of cash.

In a situation where cash is king, those with an abundance of cash can go on the offense, when everybody else is forced on the defense.

Right now the only thing stopping FANG from using this pandemic to dominate the online space even more – infect, even – than before is regulation.

What are the odds of that happening any time soon?

I thought so.

(Photo: Pixabay.com)